- A privately held corporation (manufacturing — $20mm annual sales) was in a non-monetary loan default (breach of covenant) status with its secured lender. To prevent a disastrous liquidation at the hands of a state court receiver, a Chapter 11 was filed on the client’s behalf. The secured lender was ‘taken out’ by a new lender and the Bankruptcy Court confirmed a Chapter 11 plan within 11 months of the initial filing of the case.
- A privately held corporation (mining – $10mm annual sales) operated for many years pursuant to a long-term ground lease as Lessee in the Central Valley. The Lessor asserted that a monetary default occurred under the ground lease and sought to terminate the tenancy. To prevent what would be a total cessation of operations, leaving millions of dollars of general unsecured creditors with nothing and the stock ownership valueless, a Chapter 11 was filed on the client’s behalf. The Bankruptcy Court permitted a six-month cure program in connection with ‘assumption’ of the ground lease by the client which was affirmed on appeal (after the cure program was completed). Thereafter, a plan was confirmed by which all general unsecured creditors were paid in full and 100% of the stock ownership retained by the stockholders.
- A single asset real estate limited partnership owned a 200+ unit apartment ‘trophy’ property. It had never missed a payment on its five-year loan. Prior to loan maturity, the lender sold the loan to a ‘vulture fund’ that refused to renew the loan and thereafter initiated nonjudicial foreclosure proceedings. A voluntary Chapter 11 was filed and a ‘cram down’ plan was prepared on the client’s behalf leading to an advantageous settlement for the client on the Courthouse steps.
- A commercial real estate operation had a construction loan that the bank lender promised would be renewed and converted into a long-term permanent loan upon its maturity. The well-known bank was in existence for many years, specializing in real estate projects. Unfortunately for the client, the bank was taken over by the FDIC and the loan was immediately sold to a bank that would not work with the client in any way short of proceeding to foreclosure. A Chapter 11 was filed on behalf of the client and a ‘cram down’ plan was confirmed with a new ten (10) year loan at an advantageous interest rate.
- A high-rise hotel under construction in Orange County encountered delays due to an OSHA investigation caused by an industrial accident (due to no fault of the developer). The construction loan of over $30 million was subject to a loan participation arrangement with 25 domestic and foreign lenders. The delay caused a default due to the maturity date of the loan. While the domestic lenders were very cooperative, the foreign lenders would not cooperate regarding the extension of the loan due to pressure from their governmental authorities when the loan matured and the hotel was just about fully finished. We were told by the loan servicer that the foreign lenders would cooperate if there was a ‘Court Order’ involving the loan. A Chapter 11 case was filed and there was quickly consensus among all the lenders regarding restructuring the construction loan to extend its maturity for sufficient time for the developer to obtain permanent financing. A Chapter 11 plan was promptly confirmed. Afterwards, the developer was successful in obtaining timely permanent financing and the hotel remains a Trophy Property to this day.
- A client acquired several commercial real estate leases from a Chapter 11 debtor estate in Los Angeles and Orange Counties. The firm negotiated the acquisition of the leases which were (i) at below market rental rates, (ii) in well-established locations with little need for tenant improvements, and (iii) fit into the client’s expansion plans for its retail operations in Southern California.
- A private lender held a $20mm note secured by a deed of trust on undeveloped real estate in the Inland Empire that it had previously sold to a developer. The loan went into default and the developer filed Chapter 11. The Bankruptcy Court denied confirmation of a ‘cram down’ bankruptcy plan filed by the developer after a lengthy trial. A very advantageous loan restructure was thereafter negotiated on behalf of the private lender client.
- A private party owned a long-term ground lease on commercial property (a large shopping center) in Orange County. It was discovered that a series of recorded forged instruments purported to terminate the ground lease. A licensed escrow company and a licensed realtor were involved in the scheme along with several bad private actors. Litigation had already been brought in State Court by referring real estate litigation counsel to restore the ground lease. The perpetrators then filed a series of bad faith bankruptcies to try to stall the process. The firm promptly filed several successful motions for relief from stay in the Bankruptcy Court to permit the existing litigation to proceed in the State Court, all of which were granted. As a result, the ground lease was thereafter successfully restored by referring real estate litigation counsel.
The Firm’s Expertise Benefits the Client
- A client has seemingly impossible financial problems. The orientation of the firm is to solve problems through experienced negotiation, with the Bankruptcy Court as a final line of defense.
- A client senses difficulties on the horizon with its lender due to a sale or takeover of the financial institution and the accompanying change of employees and business philosophy. The firm can assist in bridging the gap and keeping matters under control without the need for a bankruptcy unless absolutely necessary.
Certain descriptions of past results and individual lawyer biographies on this website describe past matters handled for clients of the Firm. These descriptions are meant only to provide information to the public about the activities and experience of our lawyers. We do not intent to suggest or guarantee that the same or similar results can be obtained in every matter undertaken by our lawyers. You must not assume that a similar result can be obtained in a legal matter of interest to you. The outcome of any case depends upon a variety of factors, including, but not limited to, the specific facts, applicable law, the presiding judge, the jury, and the ability of opposing counsel.
Never give in! Never give in! Never, never, never, never – in nothing great or small, large or petty. Never give in except to convictions of honor and good sense.